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latinometrics OP t1_j8ev7go wrote

From our newsletter:

Oil production growth since 2000:

• 🇲🇽 Mexico: -47%

• 🇻🇪 Venezuela: -77%

• NEW MEXICO: +812%

With a tiny fraction of the population of Venezuela and Mexico, the US state of New Mexico has experienced a boom in its oil & gas sector in recent years, surpassing the LatAm oil giants' production.

According to a Financial Times story by Myles McCormick, the boom accelerated after Russia invaded Ukraine, which drove Russia out of the list of US suppliers, and demand for domestic oil to record levels.

Aside from the obvious economic perks this brings to the state and the US, New Mexico's workforce is thriving. There's been a great decline in unemployment and a great increase in wages.

People working in the industry can earn over $27/hour, forcing companies in other sectors to compete. According to McCormick, Burger King is now offering $28/hour in NM, compared to $19/hour in New York City (so 47% higher than one of the most expensive cities to live in).

McCormick's analysis also points out that the increased production has taken the state's budget from $6B four years ago to around $9.5B this year, leading to increased spending in education, housing, healthcare, and infrastructure.

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sgigot t1_j8gvhnc wrote

Same thing happened in North Dakota 15-20 years ago. It's a great deal for the workers who show up, but a better deal for anyone who can sell them trucks or rent them apartments. It's a raw deal for anyone growing up there because you either have to work in the oil patch, find a way to cater to the travellers, or go broke.

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Due_Start_3597 t1_j8k2gm9 wrote

Did the N. Dakota gains from then stick around or not?

I'm thinking of so called "resource cursed" economies (Africa) where the resource they're rich in becomes a curse for future development.

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NMGunner17 t1_j8ji731 wrote

Yeah I’m gonna call bullshit on Burger King offering $28 an hour in NM, unless you’re just talking about the head manager.

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